Nav currently stands at 800 rs due to high dollar rate and even at pessimistic case scenario we perceive the value to be 700 rs ,the stock curently trades at fair price.
But this should change as :-
- This was when the company has net debt where as right now the company is net debt free
2)In the con-call mangament has quoted that rate of tankers have gone up significantly compared to quarter 2 which was the highest profit the company ever made in the history of the company ,for the half quarter the ships have been on time charter and they will be for another 2 months so i am pretty optimistic about the quarter 3 and quarter 4 as well .As a person in con-call asked the managment that are these tanker rates we see right now sustainable which we are seeing because of the war? ,to which the management replied anything can happen and this business is very uncertain but what they believe is even if war is over it takes time for wounds to heal and for europe going back to russia for there energy needs.
Currently the business is seeing great tailwinds and the only thing that can go wrong for the buisness is a recession which might lead to demand destruction even in that case the mangament has said they huge cash balance will be used to acquire newer ships as they have ageing fleet .
Disc:Invested at very low levels will avaerge up if the opportunity present it self .